Preliminary OI data confirmed the +3% midweek rallies was driven by net new buying with 1,608 contracts opened during the session. July saw the most, while June and August OI was net lower. There was also an influx of options, with 6k new contracts opened on Wednesday – 3.6k calls across the front months and 2.4k new puts. Lean hog futures closed the midweek session near their highs on triple digit gains. June prices were up by 3.7% on the day, back to their highest print since April 4th. The National Average Base Hog price was $2.51 higher on Wednesday afternoon at $67.67. The ECB quote was $66.36 and USDA had the WCB quote at $71.58. The CME Lean Hog Index was 10c weaker on 4/21 at $71.31.
Front month pork cutout futures ended the day up by 0.5% to 2.47%. USDA’s National Pork Carcass Cutout Value was $78.37 on Wednesday afternoon, down by 4 cents. The week’s federally inspected hog slaughter was estimated at 1.416m head through Wednesday. That is even with the same week last year but 6k head behind last week’s pace.
May 23 Hogs closed at $78.275, up $1.400,
Jun 23 Hogs closed at $90.275, up $3.225
May 23 Pork Cutout closed at $84.375, up $0.450,
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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